IDEAS home Printed from https://ideas.repec.org/a/spr/rrorus/v12y2022i2d10.1134_s2079970522020162.html
   My bibliography  Save this article

Spatial Equilibrium? The Difference of Real Income, Housing Markets, and Migration Flows between Russian Cities

Author

Listed:
  • N. K. Kurichev

    (Institute of Geography, Russian Academy of Sciences
    HSE University)

Abstract

— The objective of the study is to assess, based on a case study of large Russian cities, the proximity of the country’s economic space to the conditions of spatial equilibrium, which is formed as a result of large-scale migration flows between cities and regions of Russia. To solve this problem, we assessed the real incomes of households of various composition with or without their own housing by Russian cities of different size. When calculating real income, nominal wages, the cost of the consumer basket and purchase or rental of real estate were taken into account. Low real incomes of households in cities with populations of up to 500 000 people incentivize migration to the Moscow agglomeration and other major Russian cities. Spatial differentiation of real incomes and, as a result, migration incentives increase sharply for young families with children, as well as for families without personal housing in their cities of origin. Migration to major urban agglomerations provides an increase in real household incomes that exceeds the growth in housing prices. Consequently, high household income level in the largest cities are complemented by higher housing affordability, which amplifies intercity disparities. The Moscow agglomeration is the most attractive to migrants, in particular, Moscow oblast, where two factors are combined: relatively inexpensive housing and the availability of the capital labor market. This encourages migrants to choose the “I live in Moscow oblast, but work in Moscow” lifestyle. At the same time, real household incomes increase sharply, and Moscow oblast is Russia’s main spatial imbalance zone. In addition, large-scale and stable migration flows do not lead to equalization of the real incomes of residents of cities of various size ranks, which indicates not a static, but dynamic spatial balance in the country.

Suggested Citation

  • N. K. Kurichev, 2022. "Spatial Equilibrium? The Difference of Real Income, Housing Markets, and Migration Flows between Russian Cities," Regional Research of Russia, Springer, vol. 12(2), pages 215-226, June.
    • Handle: RePEc:spr:rrorus:v:12:y:2022:i:2:d:10.1134_s2079970522020162
    DOI: 10.1134/S2079970522020162
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1134/S2079970522020162
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1134/S2079970522020162?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Christian Bayer & Falko Juessen, 2012. "On the Dynamics of Interstate Migration: Migration Costs and Self-Selection," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(3), pages 377-401, July.
    2. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, New Economic School (NES).
    3. Andrés Rodríguez-Pose & Michael Storper, 2020. "Housing, urban growth and inequalities: The limits to deregulation and upzoning in reducing economic and spatial inequality," Urban Studies, Urban Studies Journal Limited, vol. 57(2), pages 223-248, February.
    4. Edward Glaeser & Joseph Gyourko, 2018. "The Economic Implications of Housing Supply," Journal of Economic Perspectives, American Economic Association, vol. 32(1), pages 3-30, Winter.
    5. Chang-Tai Hsieh & Enrico Moretti, 2019. "Housing Constraints and Spatial Misallocation," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(2), pages 1-39, April.
    6. Berger, Mark C. & Blomquist, Glenn C. & Sabirianova Peter, Klara, 2008. "Compensating differentials in emerging labor and housing markets: Estimates of quality of life in Russian cities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 25-55, January.
    7. Nathaniel Baum-Snow & Matthew Freedman & Ronni Pavan, 2018. "Why Has Urban Inequality Increased?," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 1-42, October.
    8. Chauvin, Juan Pablo & Glaeser, Edward & Ma, Yueran & Tobio, Kristina, 2017. "What is different about urbanization in rich and poor countries? Cities in Brazil, China, India and the United States," Journal of Urban Economics, Elsevier, vol. 98(C), pages 17-49.
    9. T. G. Nefedova & N. V. Mkrtchyan, 2018. "Regional Differences of Placing and Forecasting Labor Resources of Russian Agriculture," Studies on Russian Economic Development, Springer, vol. 29(1), pages 62-71, January.
    10. Vakulenko, Elena, 2019. "Motives for internal migration in Russia: what has changed in recent years?," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 55, pages 113-138.
    11. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    12. Ganong, Peter & Shoag, Daniel, 2017. "Why has regional income convergence in the U.S. declined?," Journal of Urban Economics, Elsevier, vol. 102(C), pages 76-90.
    13. N. K. Kurichev, 2017. "Housing construction in the Moscow agglomeration: Spatial equilibrium modeling," Regional Research of Russia, Springer, vol. 7(1), pages 23-35, January.
    14. N. K. Kurichev & E. K Kuricheva, 2019. "Migration and Investment Activity of Residents of Russian Cities in the Housing Market of Moscow Agglomeration," Regional Research of Russia, Springer, vol. 9(3), pages 213-224, July.
    15. Michael Stone, 2006. "What is housing affordability? The case for the residual income approach," Housing Policy Debate, Taylor & Francis Journals, vol. 17(1), pages 151-184.
    16. N. Kosareva & A. Tumanov., 2007. "Evaluation of Housing Affordability in Russia," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    17. Matt Padley & Lydia Marshall, 2019. "Defining and measuring housing affordability using the Minimum Income Standard," Housing Studies, Taylor & Francis Journals, vol. 34(8), pages 1307-1329, September.
    18. Aleksey Oshchepkov, 2007. "Are Interregional Wage Differentials in Russia Compensative?," Discussion Papers of DIW Berlin 750, DIW Berlin, German Institute for Economic Research.
    19. Mkrtchyan, N. & Florinskaya, Y., 2019. "Residents of Small and Mid-Size Towns of Russia: Labor Migration as an Alternative to Permanent Transfer," Journal of the New Economic Association, New Economic Association, vol. 43(3), pages 78-94.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kemeny, Thomas & Storper, Michael, 2020. "Superstar cities and left-behind places: disruptive innovation, labor demand, and interregional inequality," LSE Research Online Documents on Economics 103312, London School of Economics and Political Science, LSE Library.
    2. Knut Are Aastveit & Bruno Albuquerque & André K. Anundsen, 2023. "Changing Supply Elasticities and Regional Housing Booms," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(7), pages 1749-1783, October.
    3. E. V. Antonov & N. K. Kurichev & A. I. Treivish, 2022. "Shrinking Urban System of the Largest Country: Research Progress and Unsolved Issues," Regional Research of Russia, Springer, vol. 12(1), pages 20-35, March.
    4. Ning Jia & Raven Molloy & Christopher Smith & Abigail Wozniak, 2023. "The Economics of Internal Migration: Advances and Policy Questions," Journal of Economic Literature, American Economic Association, vol. 61(1), pages 144-180, March.
    5. Peter Phibbs & Nicole Gurran, 2021. "The role and significance of planning in the determination of house prices in Australia: Recent policy debates," Environment and Planning A, , vol. 53(3), pages 457-479, May.
    6. Matthew Mleczko & Matthew Desmond, 2023. "Using natural language processing to construct a National Zoning and Land Use Database," Urban Studies, Urban Studies Journal Limited, vol. 60(13), pages 2564-2584, October.
    7. Andrés Rodríguez-Pose & Michael Storper, 2022. "Dodging the burden of proof: A reply to Manville, Lens and Mönkkönen," Urban Studies, Urban Studies Journal Limited, vol. 59(1), pages 59-74, January.
    8. Sebastian Eichhorn & David Pehlke, 2022. "Unintended effects of regional planning in Germany," Growth and Change, Wiley Blackwell, vol. 53(2), pages 933-950, June.
    9. Simon C Büchler & Dongxiao Niu & Anne K Thompson & Siqi Zheng, 2024. "The impact of human capital and housing supply on urban growth," Urban Studies, Urban Studies Journal Limited, vol. 61(2), pages 214-230, February.
    10. Edward L. Glaeser, 2020. "Urbanization and Its Discontents," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(2), pages 191-218, April.
    11. Andrés Rodríguez-Pose & Michael Storper, 2020. "Housing, urban growth and inequalities: The limits to deregulation and upzoning in reducing economic and spatial inequality," Urban Studies, Urban Studies Journal Limited, vol. 57(2), pages 223-248, February.
    12. Yuming Fu & Song Shi, 2022. "Barriers to urban spatial development: Evidence from the 2010–2011 Christchurch earthquakes," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 218-245, January.
    13. Thomas H. Byrne & Benjamin F. Henwood & Anthony W. Orlando, 2021. "A Rising Tide Drowns Unstable Boats: How Inequality Creates Homelessness," The ANNALS of the American Academy of Political and Social Science, , vol. 693(1), pages 28-45, January.
    14. Howard, Greg & Liebersohn, Jack, 2021. "Why is the rent so darn high? The role of growing demand to live in housing-supply-inelastic cities," Journal of Urban Economics, Elsevier, vol. 124(C).
    15. Clémence Tricaud, 2019. "Better alone? Evidence on the costs of intermunicipal cooperation," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2019-12-ccr, Condorcet Center for political Economy.
    16. Sarah J. Carrington & Pablo Jiménez‐Ayora, 2021. "Shedding light on the convergence debate: Using luminosity data to investigate economic convergence in Ecuador," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 200-227, February.
    17. David H. Autor, 2019. "Work of the Past, Work of the Future," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 1-32, May.
    18. N. K. Kurichev & E. K Kuricheva, 2019. "Migration and Investment Activity of Residents of Russian Cities in the Housing Market of Moscow Agglomeration," Regional Research of Russia, Springer, vol. 9(3), pages 213-224, July.
    19. Nicholas Kacher & Luke Petach, 2021. "Boon or Burden? Evaluating the Competing Effects of House-Price Shocks on Regional Entrepreneurship," Economic Development Quarterly, , vol. 35(4), pages 287-304, November.
    20. Nicholas Chiumenti & Amrita Kulka & Aradhya Sood, 2022. "How to Increase Housing Affordability: Understanding Local Deterrents to Building Multifamily Housing," Working Papers 22-10, Federal Reserve Bank of Boston.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:rrorus:v:12:y:2022:i:2:d:10.1134_s2079970522020162. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.